trading on competition. >> the way rates are going they certainly don't go up. >> let's leave it there for the moment let's touch the market before we go it was a new record high for the s&p 500 earlier today. it's faded a bit stocks are still in the green, and that's where we will end things thanks so very much for watching let's to "the exchange" now and kelly evans. thank you, scott hi, everybody, here's what's ahead today. wall street's post-fed euphoria is fading this afternoon the market's starting to worry that tensions with iran could reach a point of no return we've got the very latest. plus, working it out, slack takes its shares public without ra raising any fresh money. is slack a unicorn in that record, we will explore. and deep discount darlings, goldman hits the brakes on tesla. we'll get to all of that in rapid fire we begin with today's record breaking rally we're starting to head back up there. dom chu with the number. >> right in the middle of the range, but it is still a very

positive day, kelly. as you can see it's green across the board, 235 points was the high for the dow, 237 call it, 257, 35 points here for the overall dow industrials at the low part of the session. so right in the middle, 25735 in the range, a big star goes next to the s&p 500 as you know, we hit a record intraday high earlier in trading and the nasdaq composite and the dow both just about 1 or so percent away from their own record highs the commodity markets very much a focus today because of geopolitical tensions, weakening dollar, interest rates, you name it it's having an inkplufluence here a lot of that has to do with tensions in the middle east after iran shot down one of our drones those shares wti moving to the upside here, and of course a weaker dollar plays into that as well also, gold, the last time we saw gold prices at this level this high was back in september of 2013 i mean, this is a huge move

going all the way back to 2013 for gold prices still up 3% today, approaching $1,400 an ounce. gold and oil, weaker dollars, interest rates, geopolitics, all of that a big story for the markets. president trump meeting wa canadian prime minister justin trudeau at the white house and commenting on iran's downing of a u.s. military drone moments ago. eamon javers is at the white house with the latest. >> reporter: the president making some comments that are now being widely seen as an attempt to deescalate some of the tensions here in the moment with iran. here's how the president responded to questions about what the iranians did in shooting down that drone and what the u.s. response might be. >> iran made a big mistake this drone was in international waters clearly we have it all documented. it's documented scientifically, not just words, and they made a very bad mistake okay

>> how will you respond? >> you'll find out >> are you willing to go to war with iran? >> you'll find out >> reporter: so the president saying you'll find out what the u.s. response would be but moments later, the president also said he believes it's possible that this was a rogue iranian general who made a mistake and did something that he wasn't authorized to do in terms of the shoot down saying that he finds it hard to believe that this was an intentional act operate of t on the part of the iranian government that's the comment that's being interpreted now as a potential attempt by trump to deescalate some of these tensions meanwhile, the president also asked about the fed, which did no not make the move he wanted yesterday. the president said he wanted the fed to cut rates the fed did not cut rates, and yet he offered a fairly muted response in the oval office. here's what he said. >> well, i guess they indicated they're going to be lower and should have done so sooner can't win it all he should have done it sooner but you can't win it all

eventually he'll do what's right perhaps. let's see what he does. >> the president there not as aggressive as he was before the announcement saying that we'll see what he does in terms of jay powell and whether he wants to demote jay powell as federal reserve chairman now saying simply you can't win them all. >> and markets whip sawed by all of this. thanks very much for more on that let's get down to bob pisani at the new york stock exchange all of these comments by the president and so much more. >> yeah, and we were doing so well, and then the president started talking. you heard eamon, he moved the markets, folks look at the s&p 500, we were just off the record highs we'd seen earlier in the morning. there is a circle where the president made the comments on the iran very shortly thereafter, maybe it was a general who made a mistake you see we sort of came back somewhat. we want to remind everybody, why are we at new highs. we're at new highs because of the central bank globally being

euphoric, the fed being euphoric, euphoria on trade. what's lacking where's this picture, what's missing from the picture fundamental improvement. folks your stock of the day is carnival cruise lines. carnival came out, they had a good quarter but they lowered their numbers for the remaining two quarters, and they said business was down in europe, also in alaska we never talk about it the fundamentals have deteriorated over there. i'm looking forward to the next few weeks. the earnings are going to come out. we're going to go back to fundamentals and hear a lot more comments how business really is with and without the tariff situation. >> looking forward to that, too. bob, thanks very much. let's talk a little bit more about what the president's comments about iran mean and the likelihood that the u.s. were to take any serious action here cnbc.com national security reporter man joins me now there's been distance between the white house and pentagon on issues like this what are you hearing this afternoon? >> reporter: about 40 minutes ago the pentagon did an on

background briefing th the press corps. they did not take questions from any of the reporters but they did make a statement, and in their statement they're calling this a routine surveillance mission that the drone was conducting based on the tensions that have happened earlier this week and earlier this month with oil tanker attacks, and they're also saying that the drone was operating in international air space, so that's where we get into contradictory statements between tehran and washington about what the drone was doing and where it was the pentagon also offered up some information about the drone and saying that it splashed down in the strait hormuz there are missions ongoing right now to recover the drone, but that's the very latest that's coming out of the pentagon. >> and then are you getting any indication about what counter measures we might be talking about? the president did reference, he said quote, you'll find out what the response here might be >> reporter: right, pretty shaky for the president of the united states to tease potential military options of course

what we've seen in the past is that presidents don't necessarily discuss any of the intelligence they also don't discuss what options are on the table, but he also seemed to down play saying that iran probably not only made a very big mistake but that could have also been a rogue error with someone within iran getting a miscommunication on if they should shoot it down or not. we're getting a little bit of a mixed signal coming out of the white house. >> thanks, we'll be listening for more appreciate it. it's been a volatile day for the markets as they digest all of this. the s&p opened at all time highs but the rally lost steam after the president's comments about iran, and this move all coming after the ten-year yield fell below 2% last night. for more let's bring in michael ferroli, the chief u.s. economist at jpmorgan. great to have you both here. john, let me start on the market today. we have the fed on the one hand,

the situation in iran. and people earlier this morning were saying wait a minute, how is it we don't have a bigger market reaction to iran shooting a drone out of the sky how would you rank all of these factors in significance? >> i think mitch mcconnell came out yesterday and said that the united states doesn't have any business really in the middle east right now, so i think that was before they shot down the drone, so i don't think anything changed in 24 hours. obviously last night we had the tens going to 198. >> talk about the interest rates for a second f. you were to just look at some of the data like jobless claims, you'd say nothing changed since the ten-year was at 3.25% last fall. what does this mean? >> i think nothing's changed globally, and that's the point so europe still has their problems, china still has their problems brexit is still a problem, so we can't just think about what's going on in the united states. we have to think of globally why are rates going lower and obviously our yield curve is getting pulled down by what's going on in europe we went from $6 trillion in negative debt, right to 12 trillion >> double that. >> just since powell said in

october that we are nowhere close to neutral, so that was his first mistake when he said that in october. that's what really made -- >> started the whole selloff. >> exactly and then we had the problem in december, which obviously they hiked and then we had the christmas eve massacre now he's finally getting his feet back under him and really figuring out what's going on when you have the entire yield curve trading below fed funds. >> right, right. >> that's a problem. we need to cut and probably sooner than later. >> mike, let me bring you in on that what is your base case now for cuts, and how -- how -- like what previous period would you draw an analogy to now is it the late 90s, do you any signs of a real slowdown >> our baseline now is we're looking for cuts in july and september. i think it's hard to draw a perfect parallels with any period i think the '98 episode would probably be closest when they cut three times in response to a

scare that was more financial than trade related but which eventually didn't slow the economy all that much. i think hopefully that would be a nice analogy because in the long run the economy did quite well as i said, there's not a perfect analogy. we're not really having a financial issue right now. we have more concerns about trade issues we're starting to see that you mentioned the jobless claims, which is true. we are starting to see some pockets of weakness and manufacturing and in capital spending if that starts to kind of spread out to the broader economy, then, you know, the '98 parallel may cease to hold, and we may have something more like a more protracted weakness, which would, you know, necessitate more than two cuts hopefully we don't see that kind of economic dynamic taking place. >> that's what makes it interesting. the s&p 500 today is at all time highs. if you said rates are down for a lot of reasons globally, speaking but not because the u.s. economy is slowing down, at least slowing down yet then all of a sudden you've

gotten yourself a huge discount on where that rate would typically be, so, you know, do people -- every type of financial asset is green today youravorite, crypto, bitcoin's been doing great stocks have been doing great bonds are up gold is up everywhere you turn other than the oil market now of course. >> well, those things usually rally when the fed begins an easing cycle right now the market's sniffing out a win-win. basically if the g20 goes well and we get a deal, that's a win. if we don't get a deal, the fed's going to cut, and they might cut a lot. so that's a win. as long as green span used to say engineering a soft landing is like jumping out of a 60 story building and hoping for the best it's very difficult to get a soft landing that's why the fed really, they could say wow, the u.s. yield curve is i don't thiwrong. the european yield curve is wrong and we should stand pat or they could say we should validate what the fed curve is telling us and

that's really the issue. >> mike, finally, i look at 2016 when we had a lot of similar things going on. the global slowdown, the bond yields were back to where we are now basically, the fed, i believe, stopped hiking at all that year, and then we shook that off i mean, what if that's the parallel. >> yeah, so there was actually one hike at the end of 2016. i think one of the differences now is that, you know, the fed back then was worried that the economy if it overheated would create inflation i don't think you have that fear now. the other thing is that based on yesterday's revised estimates, the fed basically believes they're at neutral, right, for interest rates, which is not where they were in 2016. so i think that gives the fed some room to cut here, but i think in terms of the economies, you're totally right that it does look like 2016 when the weakness was really concentrated in the goods producing sector and didn't morph out to the broader economy. so i think if you're -- if your 2016 parallel holds, we'll all be happier. >> if you're looking at it glass half full. john, before you go, a couple of

picks real quickly, places where people, you think investors could be as we ride this out >> our portfolio trades at a discount to the market so that's obviously a place to think about. >> the whole thing. >> it trades about ten times earnings, the market's about 17, 18 that's the thing, obviously bill says if there's not what ifs, then there's no opportunities, so obviously we've been making some moves during the last few months so i'll wait for him to come on and tell you. >> absolutely. he's allowed to do that anytime. great stuff, thank you both. really appreciate it don't go anywhere, here's what's still ahead on "the exchange." >> announcer: coming up, slack hits the market on its own terms. will the company's direct listing encourage others to do the same and is now the time to buy in plus, investors appear to really love discounts when it comes to the retail sector we'll explain why that's giving one group of stocks a big boost. and the ceo of boston

scientific explains why his industry is caught in the middle of the trade war this is "the exchange" on cnbc non-seasoned travelers. t and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.

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the. t reference price was $26. this wasn't a traditional ipo. this was a direct listing which bypassed that process. joining me now for more, let's bring in stefan paterno, welcome to you both. atish, you know, the reference price is kind of set because you need some kind of benchmark. the last trade was where? >> it was a little over $31. equities and options on the private market, we help companies that are late stage firms before an ipo get liquidity for their shareholders so they can better control the timing of the ipo. we've seen trades for slack skpo other companies, large, private well-known companies that are generating a ton of money really be pretty active in the private markets. >> is it true that slack in the private markets had gone from 10 bucks a share to 30 just in the past year? >> yeah, just about a year

we've seen, i believe in their s 1 over $370 million of transactions took place just annuity lain the last year, and that gives you a lot of confidence when you decide to bypass the ipo route and go a direct listing route. hundreds of millions of dollars have changed hands before so we know what we're talking about. >> and stefan, what do you think about this now following spotify to become two high profile very large direct listings that have frankly gone off pretty well >> it's about damn time. i don't know for those who can remember the globe.com ipo, you know, taken public by bear stearns that was a quintessential example of a disaster where a stock is completely under priced by the bank the bank is ensuring that the stock blows up a thousand percent, huge fees, all the road show fat cats are going to get to flip out of the stock and make a profit and who was left

holding the bag, all the people who built the company and invested early and took the risks. i've been against ipos and saying that it's a very broken process now for decades, two decades, so the spotify ipo followed by this ipo are very validating that there is a new approach there's a better approach that limits the bank's fees, that limits what those fat cat road show folks are able to gain out of it and actually lets the people who built the company and invested in the company early have some sort of a pressure relief mechanism that's a little more controlled. they can start to get out. and the price doesn't get as over hyped as you guys pointed out. there's a much more clear correlation between supply and demand. >> atish, do you think that's true generally >> i think we are going to see a lot more candidates, but i just don't think it's going to happen for most companies out there we think about banks like one of those restaurants that have like

no institution on t substitution on the menu most people that walk in, it will be a prefix here's the selection beyonce walks in, they'll figure out whatever she wants to eat. >> you're saying because it's slackin slack, because it's spotify these companies are able to push the banks around instead of vice versa. the whole point of an ipo is for companies to raise money to grow so slack and spotify and maybe airbnb are uniquely positioned to say we don't actually need to raise any money. uber couldn't have done that, right? >> certainly uber has raised a tremendous amount of money and they're operating losses are still massive, so uber in order to continue getting market share needed money slack on the other hand is one of the most efficient marketers out there. for every dollar they put in they get $1.10 back in revenue you certainly need to have a big brand that most people understand slack is not like a database company that you have to explain to a ton of people everyone understands what that is, and you don't need the

money. if you have that combined with a large diverse shareholder base, then this is a legit option. >> we heard this from bob grie felt himself, former chairman of the nasdaq who said he thinks there's no reason why these two things should be conflated to take your shares public and to raise money he said are two totally different things it just so happens that the ipo process has shoe horned them together it doesn't have to be that way my only question to you, how many companies don't need to raise money and could go this route? >> first of all, i think you could do a hybrid where there is a direct listing and you issue new stock. they just chose not to do that maybe they don't need the cash, but you know, a couple things i want to point out here first of all because i am a huge fan of slack, the platform, right i run a tech company slated, it's part of our culture eliminating internal e-mails is a revolution slack has become like an operating system for companies and i think there's a lot more companies. the only companies that still use e-mail are these stodgy old

big institutions. >> banks. >> probably banks. even though i think this is a product that has huge potential for improving service and communications and insights in all the companies of the world, i'll say this, they only generated a few hundred million in revenues last year, and 100 million in losses. when you look at their valuation at 30 x their projected revenues or 50 x last year's revenues, i think again they're over valued. i think it will take them three, four five years of growing year-over-year for them to grow into this valuation. i think the real winners, again, the people who built the company, the early investors who took the risks and the people who are going to lose in the short-term are all those people buying into their direct listing right now who are just going to have to be patient for a few years. >> fair enough, we've seen that same dynamic play out in spotify as well. great discussion, thank you both. coming up, shares of boston scientific are up more than 18% so far this year, and they're at a 15-year high the ceo joins me with what's

driving those gains. plus, should the three stripe motif be exclusive to adidas europe's second highest court just said yes. we'll debate that on rapid fire. "the exchange" is back in two. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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session high when we were up more than 250 points on the dow, the s&p did hit an all-time high before retreating. shares of carnival are down 9% the cruise line operator beating on the top and bottom line but did cut its forecast due in part on new restrictions on travel to cuba oracle headed the other way, up more than 7% to an all-time high on an earnings and revenue beat. shares helped by strength in its on premise i.t. offerings and papa johns down more than 2% the company is investing $80 million into marketing and franchise support. analysts are saying the move suggests a turn around has yet to take hold and that franchisees are expected to struggle in the near-term. now to sue herera for a cnbc news update. >> here's what's happening at this hour, everyone. house speaker nancy pelosi describingrising tensions between the u.s. and iran as a dangerous situation. she says the u.s. needs to be

strong and strategic about protecting its interests in the middle east. >> not be reckless in what we do, so it will be interesting to see what they have to say, whether the -- i don't think the president wants to go to war there's no appetite for going to war in our country an overnight shooting outside a pennsylvania nightclub leaving ten people injured authorities say the victims were standing on the sidewalk outside the nightclub in allentown when the shots rang out there have been no arrests all of the wounded are expected to recover. and former u.s. senator jeff flake is heading to harvard university the arizona republican among six new resident fellows who will join harvard's institute of politics this fall you're up to date. that's the news update this hour >> thanks very much. don't go anywhere, here's what's still ahead on "the exchange." coming up, is the end of work e-mail on the horizon

goldman sachs says tesla's rally won't last extreme discounts may be one of the hottest trades out there and three stripes and you're out. that's all ahead in rapid fire through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory... to detecting and preventing threats... to scaling up your production.

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welcome back, let's catch you up on a couple stories that should be on your radar today. it is time for rapid fire, and here to break down the headlines are bill griffeth, seema mody, and frank holland. welcome, everybody we are talking a lot of slack today. the ceo stewart butterfield made a pretty bold prediction this morning if you missed it he says we will see the end of work e-mail within seven years he says the broader world of e-mail will stick still around do you guys use it here? >> slack no >> but people here use it. it's just that you don't use it. >> we use slack here at cnbc >> we absolutely do. >> really? i had no idea. i feel left out. >> i think this actually speaks to a trend it is the younger work force and millennial audience -- >> keep digging seema, keep digging. they prefer a chat style of communication versus e-mail, outlook e-mail that is sort of more traditional and can kind of

slow down the communication process. >> look, i text, okay? no, i'm serious. i much prefer texting to talking on the phone, which drives some of my family members crazy, but that's my preferable way to have communicating. whether i do collaborative texting, that's a useful tool, but i don't think everybody's going to need this, though, right? >> i think work e-mail is not going anywhere when you send an e-mail outside the organization, you're going to do it by e-mail collaborative communication is better in the workplace. forbes said a third of people 18 to 29d, they went to their social media site as opposed to a website or app for news about the election people like that when it comes to collaborative things. if you want to send an e-mail to someone, a source or an organization, it's not going to be a slack notification. >> you bring up a good point it's one thing if slack replaces work e-mail but if we're now working with both, and this is why i've been reluctant, it's just another thing you have to monitor.

then there's your inbox and slack and all these other text channels. >> and twitter and all the other social media apps as well. >> instead of a blank e-mail when you start a job, to have a stream that you can search and go and see all the conversations, that's great. when i started here, hey, first e-mail >> you saw the story in the "new york times" where they say new employees that do that sometimes see what's been talked about when the company discusses them before they hire them? >> oh, no. >> and it's not always pretty. i'm not sure i'd want to know that. >> slack, if you're listening, there should be a way to fix that that's kind of a problem. goldman sachs cutting its price target for tesla stock by $42 today. by 42, not to 42 shares will resume a downward path because of demand for current products being below expectations tesla shares have been on a tear lately, on pace for their best month since october of 2018. they're giving back about 3% of that today >> ever since elon musk tweeted funding secured back on august 7th of last year, it has been

this uphill battle for the stock. it comes down to leadership concerns compounded with these moving targets for deliveries, and i think to what goldman sachs sort of put into perspective today, it seems like the situation will get only more complicated and more challenging for the company over time. >> and the tax credits are going away. >> in july. >> there goes the demand, and he's off twitter much more than he used to be, and you know, we talked about this before that every time he tweeted something about the company, the stock would go up. >> the stock likes it. >> now it's not doing that. >> the stock today is trading around 219. >> somebody's got a $23 price tag. >> there are definitely shorts on the street. i would guess it's still roughly where we are now, but there are shorts on the stock of zero, who say 20s, 40s, 60s, that battle is still being waged. speaking of the slack ipo, another company also made its public debut today in its grocery outlet here in our neck of the woods, i haven't heard of it, but it

calls itself the nation's largest extreme value retailer take note. the discounters are scorching hot this year. look at the performance of five below up 27%, dollar tree, dollar general up 28%. i was a little late to this one, i just discovered five below i don't know if we have the photo. this was the best $80 i ever spent. >> wow, that cost $80? >> okay. >> wow >> not the baby. >> at dollar general that's six bucks. >> that's what i'm saying, you can get so much. i do think this is a whole new crop of extreme discounters. you can throw aldi and little in there as well. this is always where the market has rewarded you if you are the low price leader. >> the lower income, you know, the price, the wage discrepancy we're talking about in this country, the lower income are incredibly price sensitive, and

if they can geg get something at a lower price. >> i went because we were looking to go to the beach for the first time my neighbor said don't spend a ton of dough loading up. go to five below you can walk out of there with little plastic sand building blocks and toys. >> that's discretionary. i'm talking about consumer staples that you can also get at some of these stores and that's where people are going to go. >> correct, and it's both. >> if you look at tjx, a lot of their brick and mortar retailers are struggling, people like going in there and thinking i might find something, and they also think it's lower priced whether it really is or not. >> there's a lot of discretionary there. the candy you can buy at checkout, that's not going to be the low price, but man, they have some good stuff. >> and apparently according to this company, their products are offered 40 to 70% below conventional prices and positive comps for 15 straight years. really commendable when you look at the broader brick and mortar retail space which has been seeing a loft o'challenges. >> san francisco based.

>> take that walmart, take that costco, right? >> absolutely. >> they're undercutting those guys. >> it's amazing. >> these are a lot of companies that don't have a big online presence they're bucking that trend in california, oregon, washington, and pennsylvania now look for them coming to your neck of the woods. >> i would think so, yes. next researchers say smart speakers like amazon's alexa could be used to tell when someone's having a heart attack. a unique sound someone makes could be used as an audio marker to detect distress these devices would be trained to detect the sound and call 911, for example, to send help they're testing the technology now. seems like a no-brainer. >> my great fear is having emts pounding on my door when i'm making other unique sounds. >> wow >> he went there >> isn't that a fear >> what kind of sounds -- >> here's the thing, you do agoal breathing, that's what this detects >> if you do identify these breathing sounds, you can almost double or triple someone's

chances of survival. >> that's a great thing. >> maybe it's worth it. >> if it sounds too good to be true, i mean, this sounds very futuristic. >> i'm blushing too much. >> we are in the 21st century, aren't we? >> i hate to be a killjoy. it's really not. the same research said iphones can detect the same noise. it's nothing new >> have they ever used it to call 911 i haven't read a story about that. >> if you put an app on those phones, apparently, this is the research i read it, i didn't do the study. >> this is what tim cook wants your apple phone to do >> health care meets wearables and speakers they can really find a way to make that an opportunity. three stripes and you're out for adidas europe's second highest court ruled the company's iconic three stripe branding doesn't qualify for trademarking because the design is too simple adidas has been using this as far back as the 1960s.

i think this is a total affront. >> i'm a little confused about this story on the one hand the stories all say yes, that the trademark is not distinctive enough, their logo to be trade marked, but on the other hand they're still protected europe wide with all the logos they put on clothing. >> then what's the point >> yeah. i mean, some other brand wanted to have the trademark annulled so they could use something very similar, but is adidas still going to be able to keep their logo or not? it sounds like they are, right >> it's interesting to me that they would come out -- it's not like it's 1960 when they first came out to the market and the court ruled this isn't distinctive enough okay, maybe then it's been 60 years we all know commonly exactly what that three stripe means, and i know when i go to the local store and there's a four striper, it's the imitator, it's not the real thing. >> adidas has multiple logos they have one that's kind of a flower shape, a mountain shape

they have a number of logos, but should three stripes just be a logo >> if they first came out with the design and you and i said we don't think so we all know what it is if anyone walked around with a pair of pants. >> there's all these new athleisure startup brand that are offering their variations of stripes on theirapparel. the timing is notable giving the skpe tigs. >> germany, europe's most successful companies. >> why would they do this to one of their home grown champions. can you imagine a u.s. court saying to nike saying i'm sorry, your swoosh,st that check's a little too simple. i don't think we're going to see that anytime soon. >> guys, thanks, it's been a pleasure the ten-year yield holding onto that one handle hitting its lowest level since november of 2016 it's raising questions about the state of the economy we'll have more on that. plus, gold and oil prices soaring, at least before everything that happened with iran this morning.

mmitt miss goldman sachs head of coody's research jeff currie ahead on "power lunch. we're back in two. my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.

welcome back, the yield on that benchmark u.s. ten-year treasury dropping to its lowest level since november of 2016 earlier today, and we're stuck below 2% still lets get out to rick santelli. he's in chicago for the latest moves. rick, here's what i find kind of interesting. the fed says look, if tariffs linger as a concern and as hurting the economy, then we'll be forced to cut rates and my point would be if you're the president you might say sure, i'd be happy to keep that uncertainty around a little while longer then i'll get my rate cut. >> and then the president gets a more active turbo trust on the market, from a political standpoint and election timing that's a good thing for him. and jay powell i hope he doesn't succumb to some of the uncertainties. they may have a way to rectify

them feds normally don't do an ease and take it back unfortunately i say because maybe that's what they should do if that was the way the fed operated i would have no problem with it. they have a tendency to get caught in long trends. we're only three basis points down on the day. right before midnight we violated that 2% down it 197 this charts in may and it's at 231. it's dropped from the high 250s. the point is is that we had a big drop in bond yields right around the same time that spread shrunk, we dropped from 242 to 207. global pressures are winning they are the reason rates are going down do we want to get caught up in their quagmire and the dollar index in three days it's lost over 1% it started with mario, yesterday it was the fed, and today there's the aftermath. all these global forces are having a big impression in our markets. the key is is it good to succumb to them or not >> not only that, as we look at

the dollar down another half a percent i saw some of the trader notes saying they think it's going to go down further in that sense too, the president is getting what he wanted. >> well, you know, here's the problem i see. much research has been done that shows there's not a huge benefit to the euro currency under 112 versus when it was around 140. the problem is, kelly, we don't know the counter, exports have been much weaker had not that move occurred. if they are manipulating their currency, which i don't think they are i just think they're caught in a negative spiral. the point is the president should understand that real good sound economics over the long-term is better than a shot in the arm of adrenaline that may not last we don't know if they cut rates why is everybody so sure the stock market would like that maybe the hint of it is more bullish. >> that's true that's absolutely true rick, thanks very much. shares of boston scientific speaking of stocks going up, rallying nearly 30% over the past year and near their highest

level in 15 years. the company's chief executive mike mahone joins us with what's atrk and how the company is wehering uncertainty when we come right back. that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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welcome back, and check out shares of boston scientific. they are on a tear this year up about 18% and at a 15-year high. what's driving that growth, and what can keep the run going? joining us now to discuss that from the heartland summit in minneapolis is mike mahoney. he's the chairman and ceo of boston scientific. also with me is our very own meg tirrell to kick things off. >> mike, thanks for being here. >> hi, meg, thanks for having me your stock as keis at a 15-yearh the sector is facing pressures, political concerns about changes to our reimbursement in the coming election, also concerns about trade affects the medical device sector. what do you tell investors about what's going to keep that stock trajectory going >> thanks, meg, what we talk about with investors is there's certainly always uncertainty in the political climate and with the challenges in the near-term with china with the tariffs, but what we focus on with our investors and our employees is always about meaningful innovation, and our job is to

really lead our teams through these uncertainties and to focus on innovation, focus on physicians, focus on patient need, and when we deliver great innovation we continue to perform well in terms of the shareholder returns and our financial metrics. >> tell us more about the potential near term china impact you just mentioned we know that on that we know on the list are are things like contact lenses, imaging equipment. how could that affect you? >> sure. there has been less impact on boston scientific in china for the reasons you stated we have life saving devices in cord yol ji, vascular. there is some minor impact this year that's really immaterial to their core league and full year guidance we're hopeful the free and open trade will open up in the near term, there hasn't been a significant impack. gl lpact >> jeff rice had a research note saying quote the risk from changes from u.s. health care

policy remains one of the few things to dent sentiment, citing a debate around medicare for all. as we approach the debates next week, what are you expkting in terms of focus and what impact that would have op your business >> the political aspects, it's difficult to predict what's most important here is used to help reduce costs, but also to drive access that's really what medicare for all is we'll see how that plays out the key to boston scientific is we're a primarily intervention medicine company yo our job to provide features which reduce length of stay and drive costs down we focus on innovation and our sweet spot of interventional medicine and we ensure that our protects are not only clinically sound and dynamic, but provide economic health care savings to the system

as long as we focus on the areas, the political shakedown, we believe will innovate and continue to perform well >> some of those interventions you have, somg of your product rs in the mewes this week. the fda has a meet going on. the safety f of some drug coated stints and bah lons. this is a meeting that's been going on yesterday and today fda says there's mortality with these devices. given the data you've seen so far, do you believe these devices should stay on market? >> yes, this is an important thing for patients for patients who need it, this is the best way to help salvage limbs and help provide ability for proper movement. so we believe that the data, these products should stay on the market we're unique in that our product

is not part of the analysis that you're referring to. this particular product is quite a bit different. the it has a reseverable polymer, characteristics with low rate, which we feel are quite unique so we're optimistic that it will stay on the market, but this process will need to play out with the f dda panels. >> thanks for your time. mike mahoney fast food chains are putting real money into fake meat. t seleshoisre's taco bell a onheidin, w boston market handling the food craze we'll find out next. woman: my reputation was trashed online.

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fake meat is causing a real stir in restaurants as customers are looking for more plant based options. they've also spent less money on food and beverages the past year so how can restaurants keep enticing customers boston market's ceo joins me to discuss and debut their new sandwich and salad offerings no fake meat here! none at all. >> you have actual chicken if you want to go meat free, go with the cucumber lad. >> bringing that lighter summer

fare to our restaurants. >> there must be a lot that goes into making a big decision like this your menu what makes you confidence now is the right time to do it? >> since aarrived in may, we've been focused on finding new ways to bring new customers in as well as giving existing customers to come more often we own rotisserirotisserie we started the craze in the '90s >> wasn't costco >> it was boston market. boston chicken as it was called then so when we looked at menu, we thought there was an opportunity. we needed an opportunity on the table at lunch because we hadn't innovated in the menu for a long time we've introduced four new delicious sandwiches from the more traditional flavors to the summer flavors like chicken and avocado along with a new salad and summer side dish

>> what's happening with the millennial rest yaunt goer are they starting to peel away and be more focused on household? with delivery, that's another area millennials are leaning into really fast as are we so we are the original home meal replacement restaurant chain, so we've really embraced the new move to delivery is that lucrative for you or who's winning at delivery? because right now, there's so many different companies vying for the space. >> it increases our cost but it's what the consumer wants. we're focused on making sure we meet consumer's expectations and delivery is one of the ways

to do that along with mobile ordering and online as well as other things. we're embracing all the new technology >> do you see a sign of a softening of the economy in any parts of the economy, in any parts of the coup tri? this is the main debate right now. >> we're seeing that consumers are spening a lot of money on delivery so where as probably traffic is soft across the industry on the base business, delivery is really growing they spend more. they have a higher average and they're spending more on delivery so we're not seeing a pullback in the amount of money people are spending >> what about avocados i'm seeing a lot that's been caught up in tariff issues, hasn't it? we're just getting started with the avocado.

we don't think it's going to affect our in a major way too badly. zpl quloul be in a good position if it becomes so big that it does >> i'll be happy about that. >> thanks for bringing this. good luck with it. and good to talk with you. that does it for the exchange today. i'll join tyler and melissa for "power lunch" which begins now >> i want some of that corn bread, kelly save me some new at 2:00, a wild trading day on wall street president trump warning iran after it took down a u.s. drone. are we headed towards a real conflict oil surging following the iranian missile strike golden sax' head of commodities will tell us where prices go from here. and the nba draft kicks off tonight. a slam dunk edition of "power lunch. starts right now >> welcome glad you could join us on this thursday afternoon